EADS Reports 2009 Results
March 9, 2010 by Marcel van Leeuwen · Leave a Comment
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Revenues of € 42.8 billion – strong deliveries across all businesses
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EBIT* before one-off in line with guidance: € 2.2 billion despite hedge rate deterioration
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A400M programme continues – full year charge of € 1.8 billion
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EBIT* of € -322 million impacted by A400M provision and foreign exchange effects
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Net loss: € -763 million
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Net Cash at € 9.8 billion due to better than expected Free Cash Flow including timing benefits from advanced payments
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Increase of Airbus single aisle production rate in December 2010
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No dividend payment recommended due to losses
09 March 2010
EADS’ (stock exchange symbol: EAD) annual results 2009 demonstrate the Group’s ability to face a challenging macro-economic and commercial environment thanks to proactive management of the order-book and of customer funding sources. It enabled strong deliveries across all businesses. However, earnings are weighed down by provisions for delays on new programmes. Revenues stood stable at € 42.8 billion. The EBIT* before one-off amounted to € 2.2 billion. Foreign exchange effects and the provision booked for the A400M programme in particular have weighed on EADS’ EBIT* of € -322 million. The order intake of € 45.8 billion reflects the significantly weaker commercial momentum in 2009. At the same time, the Group recorded strong defence and institutional business. EADS’ order book of € 389 billion provides a solid platform for future deliveries. The Net Cash position is solid at € 9.8 billion thanks to better than expected Free Cash Flow (see explanations on page 2) and remains a strong asset for the Group.
“In 2009, the commercial business environment was difficult – but we anticipated many of the challenges ahead of us and overcame them. This illustrates the strength EADS has developed over its first ten years,” said EADS CEO Louis Gallois. ”Beyond simply managing the economic downturn, our objective in 2009 was to keep a strong focus on innovation across our portfolio to lay the foundation for the next decade. I deeply appreciate the support of the Customer Nations for the A400M. Thanks to the agreement between the Customer Nations and EADS this programme is now back on track. Although the Group has to take an additional significant provision, this stabilises the programme. Apart from the A400M, we remain fully focused on improved programme management including further ramp-up of the A380, the development of the A350 and the Saudi Border Surveillance programme.”
Revenues of EADS stood at € 42.8 billion (FY 2008: € 43.3 billion), supported by record commercial aircraft deliveries at Airbus (498 units compared to 483 in 2008) but offset by lower revenue recognition in the A400M programme, price deterioration on commercial aircraft deliveries and negative foreign exchange impacts. In addition, revenues at Astrium grew by 12 percent.
EBIT* before one-off – an indicator capturing the underlying business margin by excluding non-recurring charges or profits caused by movements in provisions or foreign exchange impacts – stood at € 2.2 billion (FY 2008: € 3.3 billion). Compared to 2008, higher volumes at Airbus and Power8 savings were more than offset by a degradation of hedge rates, the deterioration of pricing on Airbus commercial deliveries and cost increases. A380 continued to weigh significantly on the underlying performance. The performance of Single Aisle and Long Range programmes in Airbus as well as in other Divisions remains robust.
The EBIT* of EADS of € -322 million (FY 2008: € 2,830 million) was burdened by A400M and A380 provisions and exceptional negative foreign exchange impacts. In total, exchange rate impacts weighed down 2009 EBIT* by € 2.5 billion compared to 2008.
EADS’ Net Income amounted to € -763 million (FY 2008: € 1,572 million), or earnings per share of € -0.94 (earnings per share FY 2008: € 1.95). The Net Income was weighed down by the deterioration of EBIT*. Self-financed R&D expenses slightly increased to € 2,825 million (FY 2008: € 2,669 million), assigned to spur new technologies and future business.
Exceptionally, due to the significant loss in 2009, the EADS Board of Directors recommends no dividend payment this year.
Free Cash Flow before customer financing of € 991 million (FY 2008: € 2,886 million) exceeded guidance due to successful Cash Flow management. It also benefited from payments of public customers at year-end which were expected in 2010. Net customer financing outflow was lower than expected during 2009 at around € 400 million. Free Cash Flow after customer financing amounted to € 585 million (FY 2008: € 2,559 million). EADS refinanced its € 1 billion Eurobond in August. Investing activities consumed € 1.9 billion, reflecting an increase in capital expenditure as investment ramps up in the A350 programme. The Group’s Net Cash position reached € 9.8 billion (year-end 2008: € 9.2 billion).
The Group’s order intake decreased to € 45.8 billion (FY 2008: € 98.6 billion). The target order intake for commercial aircraft was achieved but as expected falls short of the 2008 level. On 31 December 2009, the order book of EADS stood at a robust € 389.1 billion (year-end 2008: € 400.2 billion) despite the revaluation impact at the closing rate of 1.44 $/€ at the end of December versus 1.39 $/€ at the end of December 2008. This revaluation has led to a reduction of around € 11 billion. The defence order book increased to € 57.3 billion (year-end 2008: € 54.9 billion). This growth was driven by important military contracts in 2009 including Eurofighter Tranche 3a.
At the end of December 2009, EADS had 119,506 employees (year-end 2008: 118,349).
In 2009, EADS continued improving its Group-wide efficiency. Airbus had achieved € 2 billion in Power8 gross savings (different from the net EBIT* impact) compared to the projected cost base by the end of 2009. Smart buying, supply chain streamlining and logistics integration as well as lean manufacturing have made solid contributions to a leaner Airbus.
Power8 plus has now started and contributions will be made from all Divisions. Additional projects at Airbus include redesign implementation in single aisle and long range programmes.
Regarding the Future EADS integration and savings plan, the Group is increasing its target for gross annual savings compared to the projected cost base from € 200 million to € 350 million at the end of 2012. Future EADS aims to simplify, harmonise and integrate support functions in all areas. The savings run through ten project streams from Finance to IT, General Procurement and Facility Management.
The different cost saving initiatives are being consolidated at Division level as they further mature like in Eurocopter where they are captured within the SHAPE programme.
Upon evaluation of the request for proposal for the US Air Force Tanker replacement, Northrop Grumman has decided not to submit a bid to the US Department of Defence for the KC-X program.
As a team, serious concerns were expressed to the US Department of Defence and the US Air Force that the acquisition methodology outlined in the request for proposal (RFP) would heavily weigh the competition in favour of the smaller, less capable Boeing tanker. Northrop’s in-depth analysis of the RFP reaffirmed those concerns and prompted the decision not to bid.
This decision does not diminish EADS’ commitment to the US, or to its service men and women. EADS also remains convinced that the A330 Multi Role Tanker Transport (MRTT) aircraft would deliver added capability, lower risk and best value for both the service men and women and US taxpayer.
It has been flown, tested and proven. The A330 MRTT has been selected over the Boeing tanker in the last five consecutive competitions and will shortly enter service with several US allies.
Outlook
As EADS enters into 2010, the Group remains fundamentally solid to cope with the improving but still volatile economic environment.
This is based on a resilient, actively managed backlog of 3,488 aircraft in Airbus, 1,303 in Eurocopter and strong backlog in the Space and Defence businesses.
Progressive recovery in traffic and yield especially in emerging markets should first stabilise airline financials before it leads to additional ordering activity.
Based on a number of active campaigns, which should lead to 250-300 new gross orders in 2010 and a stable overbooked backlog on single aisle aircraft, Airbus decided to increase production rate from 34 to 36 aircraft per month on single aisles starting in December 2010 while keeping the long range programme production rates roughly stable at around 8 aircraft per month.
In 2010, Airbus expects to deliver up to the same level of aircraft as in 2009 and new gross orders should range between 250 and 300 aircraft. Eurocopter should deliver around 6 percent less helicopters in 2010 compared to 2009.
Therefore, using € 1 = $1.40 as the average spot rate, EADS revenues should be roughly stable in 2010.
EADS’ EBIT* in 2010 will be around € 1 billion. The deterioration of the hedge rates will weigh by about € -1 billion compared to 2009. A380, while slightly improving, will continue to weigh substantially on the EBIT* before one-off, as in 2009. Cost savings and some improvement in aircraft pricing should contribute positively while weaker helicopter deliveries, some increase in Research & Development (R&D) and cost inflation will weigh on profitability.
Going forward, the EBIT* performance of EADS will be dependent on the Group’s ability to execute on the A400M, A380 and A350 programmes in line with the commitments made to its customers.
Provided a sustainable year-end cash inflow of institutional and government business and subject to Pre-Delivery Payment advances for the A400M programme, the Free Cash Flow before customer financing should be break-even. Free Cash Flow after customer financing should be negative due to customer financing cash-outflows of around € 1 billion.
*
EADS uses EBIT pre goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon.
**
This accounting method was used by EADS from September 2008 until the end of December 2009 as EADS could neither finally agree with OCCAR on an updated contract scheme for the A400M programme nor reliably assess the related financial implications of the delayed A400M programme. (For more details refer to the “Year 2009 Report, Unaudited Condensed Consolidated, Financial Information of EADS N.V. for the year ended December 31, 2009”).
EADS is a global leader in aerospace, defence and related services. In 2009, the Group – comprising Airbus, Eurocopter, EADS Astrium and EADS Defence & Security – generated revenues of € 42.8 billion and employed a workforce of more than 119,000.
Source: EADS
Russian Helicopter Manufacture Up 8.3% In 2009
March 1, 2010 by Marcel van Leeuwen · Leave a Comment
Moscow/1 March 2010 – The Russian helicopter industry continued to increase its output in 2009: Russian Helicopters enterprises produced 183 helicopters for local and international customers, increasing the total by 14 compared to 2008. The 8.3% growth was made possible through a joint effort by all Russian rotorcraft industry specialists.
The deliveries breakdown stayed similar to that of 2008: 105 civil helicopters were delivered by the end of 2009, of which 9 were in VIP configuration with luxury interiors.
The share of export, counting FSUE Rosoboronexport contracts, exceeded 50% of the total 2009 deliveries.
| Enterprise | Helicopter Type | 2009 |
| Ulan-Ude Aviation Plant | TOTAL | 60 |
| Total, Mi-8/171 | 60 | |
| Kazan Helicopter Plant | TOTAL | 85 |
| Total, Mi-8/17 | 79 | |
| Total, ANSAT-U | 6 | |
| Kumertau Aviation Production Enterprise | TOTAL | 13 |
| Total, Ka-32 | 2 | |
| Total, Ka-226 | 5 | |
| Total, Ka-28 | 6 | |
| Rostvertol | TOTAL | 15 |
| Total, Mi-24/35 | 3 | |
| Total, Mi-26 | 2 | |
| Progress | TOTAL | 10 |
| TOTAL, including deliveries to Russian Defence Ministry: | 183 | |
Source: Russian Helicopter
UAC announces preliminary results for 2009
February 1, 2010 by Rob Vogelaar · Leave a Comment
UAC a Russion Joint Stock Company “United Aircraft Corporation”
In 2009, 17 commercial aircraft were manufactured, of which 14 were delivered to the customers, including four Il-96, five Tu-204, three Tu-214 and two An-148. Three SSJ-100 aircraft were involved in the flight tests and the certification campaign. The regional jet premiered internationally at the Le Bourget Air Show in June 2009. In comparison with 2008 civil aircraft deliveries grew from 9 to 14 aircraft.
Commercial aircraft deliveries in 2009:
| Aircraft type | Quantity | Aircraft Operator |
|---|---|---|
| Il-96 | 1 | Rossiya Airlines |
| 3 | Polet Airlines | |
| Tu-204 | 2 | Red Wings |
| 1 | Cubana de Aviacion | |
| 1 | Air Koryo | |
| 1 | VTB Leasing | |
| Tu-214 | 2 | Affairs management department of the President’s administration |
| 1 | Transaero | |
| SSJ-100 | 3 | [flight tests] |
| An-148 | 2 | Rossiya Airlines |
Photo: Rob Vogelaar ZAP16 Group
Raytheon Reports Strong Fourth Quarter and Full-Year 2009 Results; Reaffirms Outlook for Continued Growth in 2010
January 28, 2010 by Marcel van Leeuwen · Leave a Comment
Highlights
- Solid bookings of $7.1 billion in the quarter and $25.1 billion for the year
- Delivered strong sales growth of 10 percent in the quarter and 7 percent for the year
- Fourth quarter diluted earnings per share (EPS) from continuing operations of $1.30, up 29 percent; full-year 2009 EPS from continuing operations of $4.89, up 24 percent
- Strong operating cash flow of $1.1 billion in the quarter and $2.7 billion for the year
Raytheon Company (NYSE: RTN) reported fourth quarter 2009 income from continuing operations of $517 million, up 21 percent compared to $428 million in the fourth quarter 2008. EPS from continuing operations for the fourth quarter 2009 was $1.30, up 29 percent compared to $1.01 in the fourth quarter 2008. Fourth quarter 2008 income from continuing operations included a $45 million ($69 million pretax) unfavorable adjustment due to the impact of pension investment returns on existing contracts in 2008.
“Our 2009 results reflect the increasing global demand for our capabilities, as well as the Company’s strong operational performance,” said William H. Swanson, Raytheon’s Chairman and CEO. “Looking ahead, we expect continued growth by providing our customers with innovative solutions that address their evolving needs.” Net sales in the fourth quarter 2009 were $6.7 billion, up 10 percent from $6.1 billion in the fourth quarter 2008.Operating cash flow from continuing operations in the fourth quarter 2009 was $1,073 million compared to $444 million in the fourth quarter 2008. In the fourth quarter 2008 the Company made $660 million in discretionary cash contributions to its pension plans. The Company made $1,115 million in total cash contributions to its pension plans in full-year 2009 compared to $1,174 million in full-year 2008.In the fourth quarter 2009 the Company repurchased 6.0 million shares of common stock for $300 million, as part of its previously announced share repurchase program. For the full-year 2009 the Company repurchased 25.8 million shares of common stock for $1.2 billion.
Full-Year Financial Results
Full-year 2009 income from continuing operations was $2.0 billion, up 16 percent compared to $1.7 billion for the full-year 2008. EPS from continuing operations for the full-year 2009 was $4.89, up 24 percent compared to $3.93 for the full-year 2008.Net sales in 2009 were $24.9 billion, up 7 percent from $23.2 billion in 2008, with all of Raytheon’s businesses contributing to the sales growth.The Company generated strong operating cash flow for the year. Operating cash flow from continuing operations was $2.7 billion in 2009 compared to $2.0 billion in 2008. The increase in operating cash flow in 2009 was primarily due to improved performance and lower net cash tax payments. The Company paid $627 million in cash taxes in 2009 and received $419 million in tax refunds and credits, primarily related to the discretionary cash contributions that it made to its pension plans in December 2008. The Company paid $545 million in cash taxes in 2008 and received $97 million in tax refunds and credits.The Company ended 2009 in a net cash position of $313 million ($2.6 billion in cash and cash equivalents less total debt of $2.3 billion).
Summary Financial Results
4th Quarter %
-----------
($ in millions, except per
share data) 2009 2008(1) Change
---- ------ ------
Net sales $6,667 $6,086 10%
Income from continuing
operations $517 $428 21%
Income from continuing
operations attributable to
Raytheon Company $504 $421 20%
FAS/CAS Adjusted Income(2) $500 $441 13%
EPS from continuing operations $1.30 $1.01 29%
FAS/CAS Adjusted EPS(2) $1.29 $1.06 22%
Operating cash flow from cont.
ops. $1,073 $444
Workdays in fiscal reporting
calendar 61 60
Full-Year %
---------
($ in millions, except per
share data) 2009 2008(1) Change
---- ------ ------
Net sales $24,881 $23,174 7%
Income from continuing
operations $1,977 $1,698 16%
Income from continuing
operations attributable to
Raytheon Company $1,936 $1,674 16%
FAS/CAS Adjusted Income(2) $1,918 $1,754 9%
EPS from continuing operations $4.89 $3.93 24%
FAS/CAS Adjusted EPS(2) $4.85 $4.12 18%
Operating cash flow from cont.
ops. $2,745 $2,036
Workdays in fiscal reporting
calendar 249 250
(1) Fourth quarter and full-year 2008 includes a $45 million ($69
million pretax) unfavorable adjustment due to the impact of pension
investment returns on existing contracts in 2008.
(2) FAS/CAS Adjusted Income is defined as income from continuing
operations attributable to Raytheon Company common stockholders
excluding the after-tax impact of the FAS/CAS pension adjustment.
FAS/CAS Adjusted EPS is defined as EPS from continuing operations
attributable to Raytheon Company common stockholders excluding the
earnings per share impact of the FAS/CAS pension adjustment. FAS/
CAS Adjusted EPS and FAS/CAS Adjusted Income are non-GAAP
financial measures. See attachment F for a reconciliation of these
measures and a discussion of why the Company is presenting this
information.
Bookings and Backlog
Bookings 4th Quarter Full-Year
----------- ---------
($ in millions) 2009 2008 2009 2008
---- ---- ---- ----
Bookings $7,065 $8,530 $25,058 $26,820
======= =======
Backlog Period Ending
-------------
($ in millions) 12/31/09 12/31/08
-------- --------
Backlog* $36,877 $38,884
Funded Backlog $23,479 $21,986
* Due to a change in Missile Defense Agency priorities, on June 10,
2009 the Kinetic Energy Interceptor (KEI) program was terminated for
convenience, resulting in a $2.4 billion reduction of the Company's
backlog at the end of the second quarter 2009.
Bookings exceeded net sales in both the fourth quarter and full-year 2009.
The Company ended 2009 with a backlog of $36.9 billion and its highest year-end funded backlog of $23.5 billion.
Outlook
2010 Financial Outlook 2010 Outlook
------------
Prior
2009A Current (10/22/09)
----- ------- -----------
Net Sales ($B) 24.9 25.9 - 26.4 25.9 - 26.4
FAS/CAS Pension Inc./(Exp.) ($M) 27 (220)* (228)
(95) -
Interest Expense, Net ($M) (109) (110)* (90) - (105)
Diluted Shares (M) 395.7 377 - 382 377 - 382
Effective Tax Rate 32.5% ~31.5% ~31.5%
EPS from Continuing Operations $4.89 $4.75 - $4.90 $4.75 - $4.90
FAS/CAS Adjusted EPS(1) $4.85 $5.13 - $5.28* $5.16 - $5.31
Operating Cash Flow from Cont.
Ops. ($B) 2.7 2.0 - 2.2 2.0 - 2.2
ROIC (%)(1) 12.2 12.2 - 12.6 Not provided
* Denotes change from prior
guidance.
(1) FAS/CAS Adjusted EPS is defined as EPS from continuing
operations attributable to Raytheon Company common stockholders
excluding the earnings per share impact of the FAS/CAS pension
adjustment. The statutory tax rate of 35.0% was used to calculate
the after-tax impact of the current FAS/CAS pension adjustment.
The effective tax rate of 31.5% was used to calculate the after-tax
impact of the prior FAS/CAS pension adjustment. FAS/CAS Adjusted
EPS and ROIC are non-GAAP financial measures. See attachment F for
a reconciliation of FAS/CAS Adjusted EPS to EPS from continuing
operations and attachment G for a calculation of ROIC and
discussions of why the Company is presenting this information.
The Company is reaffirming its prior guidance for 2010 and providing more detailed information. Charts containing additional information on the Company’s 2010 guidance are available on the Company’s website at www.raytheon.com.
Segment Results
Integrated Defense Systems
4th Quarter % Full-Year %
----------- ---------
($ in
millions) 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Net Sales $1,541 $1,423 8% $5,525 $5,148 7%
Operating
Income $249 $244 2% $859 $870 -1%
Operating
Margin 16.2% 17.1% 15.5% 16.9%
Fourth Quarter
Integrated Defense Systems (IDS) had fourth quarter 2009 net sales of $1,541 million, up 8 percent compared to $1,423 million in the fourth quarter 2008, primarily due to growth on international Patriot programs. IDS recorded $249 million of operating income compared to $244 million in the fourth quarter 2008.
During the quarter, IDS booked $990 million for a letter contract on ground-system hardware and initial spares for the Patriot Air and Missile Defense System for Taiwan, after receiving contract awards totaling $1.1 billion. IDS also booked $160 million related to the renewal of an international Patriot technical support contract and $315 million for systems design work for the Zumwalt-class destroyer for the U.S. Navy.
Full-year
IDS had full-year 2009 net sales of $5,525 million, up 7 percent compared to $5,148 million in 2008. The increase in sales was primarily due to growth on international Patriot programs. IDS recorded $859 million of operating income in 2009 compared to $870 million in 2008.
During the year, IDS booked $1,982 million to fund new production and upgrades of the Patriot Air and Missile Defense System for Taiwan and United Arab Emirates (UAE). IDS also booked $650 million on the Zumwalt-class destroyer program, $157 million to provide Finland with Surface Launched Medium Range Air-to-Air Missile (SL-AMRAAM) systems, and $150 million for Joint Land Attack Cruise Missile Defense Elevated Netted Sensor Systems (JLENS) for the U.S. Army.
Intelligence and Information Systems
4th Quarter % Full-Year %
----------- ---------
($ in
millions) 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Net Sales $803 $810 -1% $3,204 $3,132 2%
Operating
Income $64 $67 -4% $259 $253 2%
Operating
Margin 8.0% 8.3% 8.1% 8.1%
Fourth Quarter
Intelligence and Information Systems (IIS) had fourth quarter 2009 net sales of $803 million compared to $810 million in the fourth quarter 2008. IIS recorded $64 million of operating income compared to $67 million in the fourth quarter 2008.
During the quarter, IIS booked $153 million on a contract to provide intelligence, surveillance and reconnaissance (ISR) support to the U.S. Air Force. IIS also booked $519 million on a number of classified contracts.
Full-year
IIS had full-year 2009 net sales of $3,204 million compared to $3,132 million in 2008. IIS recorded $259 million of operating income in 2009 compared to $253 million in 2008.
During the year, IIS booked $1,364 million on a number of classified contracts.
Missile Systems
4th Quarter % Full-Year %
----------- ---------
($ in
millions) 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Net Sales $1,413 $1,366 3% $5,561 $5,408 3%
Operating
Income $154 $142 8% $604 $584 3%
Operating
Margin 10.9% 10.4% 10.9% 10.8%
Fourth Quarter
Missile Systems (MS) had fourth quarter 2009 net sales of $1,413 million compared to $1,366 million in the fourth quarter 2008, primarily due to higher volume on the Evolved Sea Sparrow Missile (ESSM), Maverick, and Phalanx programs. MS recorded $154 million of operating income compared to $142 million in the fourth quarter 2008.
During the quarter, MS booked $222 million for the production of Standard Missile-2 (SM-2) for international customers and the U.S. Navy, and $101 million for the development of Standard Missile-3 (SM-3) for the Missile Defense Agency. MS also booked $201 million for the production of ESSM for international customers and the U.S. Navy, $170 million for the production of Maverick missiles for an international customer and $111 million for the production of Tube Launched, Optically Tracked, Wireless (TOW) missiles for international customers and the U.S. Army.
Full-year
MS had full-year 2009 net sales of $5,561 million compared to $5,408 million in 2008. The increase in sales in 2009 was primarily due to higher volume on the SM-3 and Maverick programs. MS recorded $604 million of operating income in 2009 compared to $584 million in 2008. The increase in operating income in 2009 was primarily due to higher volume.
During the year, MS booked $645 million for the Advanced Medium-Range Air-to-Air Missile (AMRAAM) program for international customers and the U.S. Air Force, $514 million for TOW missiles for international customers and the U.S. Army, and $508 million for ESSM and $402 million for Phalanx Weapon Systems for international customers and the U.S. Navy. MS also booked $384 million on SM-2 for international customers and the U.S. Navy, $318 million for SM-3 for the Missile Defense Agency and $294 million for Tactical Tomahawk cruise missiles for the U.S. Navy.
Network Centric Systems
4th Quarter % Full-Year %
----------- ---------
($ in
millions) 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Net Sales $1,259 $1,125 12% $4,822 $4,510 7%
Operating
Income $169 $148 14% $674 $575 17%
Operating
Margin 13.4% 13.2% 14.0% 12.7%
Fourth Quarter
Network Centric Systems (NCS) had fourth quarter 2009 net sales of $1,259 million, up 12 percent compared to $1,125 million in the fourth quarter 2008, due to higher volume on various programs, primarily for the U.S. Army. NCS recorded $169 million of operating income compared to $148 million in the fourth quarter 2008. The increase in operating income was primarily due to the increased volume.
During the quarter, NCS booked $446 million on an international classified program and an additional $127 million for a toll system replacement program.
Full-year
NCS had full-year 2009 net sales of $4,822 million, up 7 percent compared to $4,510 million in 2008. The increase in sales was due to higher volume on various production programs, primarily for the U.S. Army. NCS recorded $674 million of operating income compared to $575 million in 2008. The increase in operating income was primarily due to improved program performance and higher volume.
During the year, NCS booked $163 million for Improved Target Acquisition Systems (ITAS), $146 million for Horizontal Technology Insertion (HTI) forward-looking infrared kits, $117 million for Commander’s Independent Viewers (CIV), $107 million for the Secure Mobile Anti-Jam Reliable Tactical Terminal (SMART-T) program and $97 million for Thermal Weapon Sights II for the U.S. Army, and $82 million for the Global Positioning Satellite-Aided Geosynchronous Augmented Navigation (GAGAN) system for the India Space Research Organization (ISRO).
Space and Airborne Systems
4th Quarter % Full-Year %
-----------
($ in
millions) 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Net Sales $1,266 $1,166 9% $4,582 $4,280 7%
Operating
Income $174 $167 4% $647 $569 14%
Operating
Margin 13.7% 14.3% 14.1% 13.3%
Fourth Quarter
Space and Airborne Systems (SAS) had fourth quarter 2009 net sales of $1,266 million, up 9 percent compared to $1,166 million in the fourth quarter 2008, primarily due to growth on classified business. SAS recorded $174 million of operating income compared to $167 million in the fourth quarter 2008. The increase in operating income was primarily due to higher volume.
During the quarter, SAS booked $122 million for the B-2 Radar Modernization Program (RMP). SAS also booked $131 million on a number of classified contracts.
Full-year
SAS had full-year 2009 net sales of $4,582 million, up 7 percent compared to $4,280 million in 2008, primarily due to growth on classified business. SAS recorded $647 million of operating income in 2009 compared to $569 million in 2008. The increase in operating income was primarily due to higher volume, favorable mix and contractual settlements.
During the year, SAS booked $422 million to supply APG-63 fire control radars and support equipment for the Japan Air Self-Defense Force, $295 million for the B-2 RMP and $147 million on the Integrated Sensor Is Structure (ISIS) radar program for the Defense Advanced Research Projects Agency (DARPA). SAS also booked $1,330 million on a number of classified contracts.
Technical Services
4th Quarter % Full-Year %
----------- ---------
($ in
millions) 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
Net Sales $888 $744 19% $3,161 $2,601 22%
Operating
Income $58 $49 18% $215 $174 24%
Operating
Margin 6.5% 6.6% 6.8% 6.7%
Fourth Quarter
Technical Services (TS) had fourth quarter 2009 net sales of $888 million, up 19 percent compared to $744 million in the fourth quarter 2008, primarily due to continued growth in domestic and foreign operational training programs for the U.S. Army’s Warfighter Field Operations Customer Support activities. TS recorded operating income of $58 million in the fourth quarter 2009 compared to $49 million in the fourth quarter 2008, primarily due to higher volume.
During the quarter, TS booked $67 million for work on domestic operational training programs for the U.S. Army.
Full-year
TS had full-year 2009 net sales of $3,161 million, up 22 percent compared to $2,601 million in 2008. TS recorded operating income of $215 million in 2009 compared to $174 million in 2008. The increase in net sales and operating income were primarily due to continued strong growth in domestic and foreign operational training programs and the Federal Aviation Administration’s (FAA) Air Traffic Control Optimum Training Solutions (ATCOTS).
During the year, TS booked $1,011 million on domestic operational training programs and $300 million on foreign operational training programs for the U.S. Army. TS also booked $160 million to upgrade Phalanx Weapon Systems for the Royal Canadian Navy and $100 million for a Defense Threat Reduction Agency (DTRA) program.
Raytheon Company (NYSE: RTN), with 2009 sales of $25 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 88 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 75,000 people worldwide.
Conference Call on the Fourth Quarter and Full-Year 2009 Financial Results
Raytheon’s financial results conference call will be held on Thursday, January 28, 2010 at 9 a.m. ET. Participants will include William H. Swanson, Chairman and CEO; David C. Wajsgras, senior vice president and CFO; and other Company executives.
The dial-in number for the conference call will be (866) 543-6405 in the U.S. or (617) 213-8897 outside of the U.S. The conference call will also be audiocast on the Internet at www.raytheon.com/ir. Individuals may listen to the call and download charts that will be used during the call. These charts will be available for printing prior to the call.
Interested parties are encouraged to check the website ahead of time to ensure their computers are configured for the audio stream. Instructions for obtaining the free required downloadable software are posted on the site.
Disclosure Regarding Forward-looking Statements
This release and the attachments contain forward-looking statements, including information regarding the Company’s 2010 financial outlook, future plans, objectives, business prospects and anticipated financial performance. These forward-looking statements are not statements of historical facts and represent only the Company’s current expectations regarding such matters. These statements inherently involve a wide range of known and unknown risks and uncertainties. The Company’s actual actions and results could differ materially from what is expressed or implied by these statements. Specific factors that could cause such a difference include, but are not limited to: the Company’s dependence on the U.S. Government for a significant portion of its business and the risks associated with U.S. Government sales, including changes or shifts in defense spending, uncertain funding of programs, potential termination of contracts, and difficulties in contract performance; the ability to procure new contracts; the risks of conducting business in foreign countries; the ability to comply with extensive governmental regulation, including import and export policies, the Foreign Corrupt Practices Act, the International Traffic in Arms Regulations, and procurement and other regulations; the impact of competition; the ability to develop products and technologies; the impact of changes in the financial markets and global economic conditions; the risk that actual pension returns, discount rates or other actuarial assumptions are significantly different than the Company’s assumptions; the risk of cost overruns, particularly for the Company’s fixed-price contracts; dependence on component availability, subcontractor performance and key suppliers; risks of a negative government audit; the use of accounting estimates in the Company’s financial statements; risks associated with acquisitions, dispositions, joint ventures and other business arrangements; risks of an impairment of goodwill or other intangible assets; the outcome of contingencies and litigation matters, including government investigations; the ability to recruit and retain qualified personnel; the impact of potential security threats and other disruptions; and other factors as may be detailed from time to time in the Company’s public announcements and Securities and Exchange Commission filings. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release and the attachments or to update them to reflect events or circumstances occurring after the date of this release, including any acquisitions, dispositions or other business arrangements that may be announced or closed after such date. This release and the attachments also contain non-GAAP financial measures. A GAAP reconciliation and a discussion of the Company’s use of these measures are included in this release or the attachments.
Media Contact: Investor Relations Contact:
Jon Kasle Marc Kaplan
781-522-5110 781-522-5141
Attachment A
Raytheon Company
Preliminary Statement of Operations Information
Fourth Quarter 2009
(In millions, except per
share amounts)
Three Months Ended Twelve Months Ended
31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08
--------- --------- --------- ---------
Total net sales $6,667 $6,086 $24,881 $23,174
------ ------ ------- -------
Operating expenses
Cost of sales 5,317 4,903 19,747 18,489
Administrative
and selling
expenses 392 392 1,527 1,548
Research and
development
expenses 158 138 565 517
--- --- --- ---
Total operating
expenses 5,867 5,433 21,839 20,554
----- ----- ------ ------
Operating income 800 653 3,042 2,620
--- --- ----- -----
Interest expense 28 32 123 129
Interest income (3) (8) (14) (64)
Other expense, net 21 12 3 33
--- --- --- ---
Non-operating expense,
net 46 36 112 98
--- --- --- ---
Income from continuing
operations before taxes 754 617 2,930 2,522
Federal and foreign
income taxes 237 189 953 824
--- --- --- ---
Income from continuing
operations 517 428 1,977 1,698
Income (loss) from
discontinued operations,
net of tax - - (1) (2)
--- --- --- ---
Net income 517 428 1,976 1,696
Less: Net income
attributable
to noncontrolling
interests 13 7 41 24
--- --- --- ---
Net income attributable
to Raytheon Company $504 $421 $1,935 $1,672
==== ==== ====== ======
Basic earnings (loss)
per share attributable
to Raytheon Company
common stockholders:
Income from
continuing
operations $1.32 $1.03 $4.96 $4.01
Income (loss)
from
discontinued
operations - - - (0.01)
Net income 1.32 1.03 4.96 4.01
Diluted earnings
(loss) per share
attributable
to Raytheon
Company common
stockholders:
Income from
continuing
operations $1.30 $1.01 $4.89 $3.93
Income (loss)
from
discontinued
operations - - - (0.01)
Net income 1.30 1.01 4.89 3.92
Amounts attributable
to Raytheon Company
common stockholders:
Income from
continuing
operations $504 $421 $1,936 $1,674
Income (loss)
from
discontinued
operations - - (1) (2)
--- --- --- ---
Net income $504 $421 $1,935 $1,672
==== ==== ====== ======
Average shares
outstanding
Basic 382.2 409.8 390.4 417.2
Diluted 388.4 416.4 395.7 426.5
Attachment B
Raytheon Company
Preliminary Segment Information
Fourth Quarter 2009
Total Net Sales Operating Income
(In millions,
except
percentages) Three Months Ended Three Months Ended
------------------ ------------------
31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08
--------- --------- --------- ---------
Integrated
Defense
Systems $1,541 $1,423 $249 $244
Intelligence
and
Information
Systems 803 810 64 67
Missile
Systems 1,413 1,366 154 142
Network
Centric
Systems 1,259 1,125 169 148
Space and
Airborne
Systems 1,266 1,166 174 167
Technical
Services 888 744 58 49
FAS/CAS
Pension
Adjustment - - 6 (30)
Corporate and
Eliminations (503) (548) (74) (134)
---- ---- --- ----
Total $6,667 $6,086 $800 $653
====== ====== ==== ====
Operating Income
As a Percent of Sales
(In millions, except
percentages) Three Months Ended
------------------
31-Dec-09 31-Dec-08
--------- ---------
Integrated Defense
Systems 16.2% 17.1%
Intelligence and
Information Systems 8.0% 8.3%
Missile Systems 10.9% 10.4%
Network Centric Systems 13.4% 13.2%
Space and Airborne
Systems 13.7% 14.3%
Technical Services 6.5% 6.6%
FAS/CAS Pension
Adjustment
Corporate and
Eliminations
Total 12.0% 10.7%
Total Net Sales Operating Income
(In millions,
except
percentages) Twelve Months Ended Twelve Months Ended
------------------- -------------------
31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08
--------- --------- --------- ---------
Integrated
Defense
Systems $5,525 $5,148 $859 $870
Intelligence
and
Information
Systems 3,204 3,132 259 253
Missile
Systems 5,561 5,408 604 584
Network
Centric
Systems 4,822 4,510 674 575
Space and
Airborne
Systems 4,582 4,280 647 569
Technical
Services 3,161 2,601 215 174
FAS/CAS
Pension
Adjustment - - 27 (123)
Corporate and
Eliminations (1,974) (1,905) (243) (282)
------ ------ ---- ----
Total $24,881 $23,174 $3,042 $2,620
======= ======= ====== ======
Operating Income
As a Percent of Sales
(In millions, except
percentages) Twelve Months Ended
-------------------
31-Dec-09 31-Dec-08
--------- ---------
Integrated Defense
Systems 15.5% 16.9%
Intelligence and
Information Systems 8.1% 8.1%
Missile Systems 10.9% 10.8%
Network Centric Systems 14.0% 12.7%
Space and Airborne
Systems 14.1% 13.3%
Technical Services 6.8% 6.7%
FAS/CAS Pension
Adjustment
Corporate and
Eliminations
Total 12.2% 11.3%
Attachment C
Raytheon Company
Other Preliminary Information
Fourth Quarter 2009
(In millions) Funded Backlog Total Backlog
-------------- -------------
31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08
--------- --------- --------- ---------
Integrated Defense
Systems $5,595 $4,802 $10,665 $9,883
Intelligence and
Information
Systems 1,588 1,890 4,360 5,137
Missile Systems* 6,454 6,082 7,657 9,937
Network Centric
Systems 4,389 4,593 5,501 5,733
Space and Airborne
Systems 3,402 2,731 5,921 5,442
Technical Services 2,051 1,888 2,773 2,752
Total $23,479 $21,986 $36,877 $38,884
======= ======= ======= =======
Bookings Bookings
Three Months Ended Twelve Months Ended
------------------ -------------------
31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08
--------- --------- --------- ---------
Bookings $7,065 $8,530 $25,058 $26,820
====== ====== ======= =======
* Due to a change in Missile Defense Agency priorities, on June 10, 2009
the Kinetic Energy Interceptor (KEI) program was terminated for
convenience, resulting in a $2.4 billion reduction of the Company's
backlog at the end of the second quarter of 2009.
Attachment D
Raytheon Company
Preliminary Balance Sheet Information
Fourth Quarter 2009
(In millions)
31-Dec-09 31-Dec-08
--------- ---------
Assets
Cash and cash equivalents $2,642 $2,259
Accounts receivable, net 120 105
Contracts in process 4,373 3,793
Inventories 344 325
Current tax asset - 441
Deferred taxes 273 395
Prepaid expenses and other current assets 116 99
--- ---
Total current assets 7,868 7,417
Property, plant and equipment, net 2,001 2,024
Deferred taxes 436 735
Prepaid retiree benefits 111 56
Goodwill 11,922 11,662
Other assets, net 1,269 1,240
----- -----
Total assets $23,607 $23,134
======= =======
Liabilities and Equity
Current liabilities
Advance payments and billings in excess of
costs incurred $2,224 $1,970
Accounts payable 1,397 1,201
Accrued employee compensation 868 913
Other accrued expenses 1,034 1,065
----- -----
Total current liabilities 5,523 5,149
Accrued retiree benefits and other long-
term liabilities 5,793 6,488
Deferred taxes 23 -
Long-term debt 2,329 2,309
Equity
Raytheon Company stockholders' equity
Common stock 4 4
Additional paid-in capital 10,991 10,873
Accumulated other comprehensive loss (4,824) (5,182)
Treasury stock, at cost (5,446) (4,254)
Retained earnings 9,102 7,646
----- -----
Total Raytheon Company stockholders' equity 9,827 9,087
Noncontrolling interest in subsidiaries 112 101
--- ---
Total equity 9,939 9,188
----- -----
Total liabilities and equity $23,607 $23,134
======= =======
Attachment E
Raytheon Company
Preliminary Cash Flow Information
Fourth Quarter 2009
(In millions) Three Months Ended Twelve Months Ended
------------------ -------------------
31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08
--------- --------- --------- ---------
Net income $517 $428 $1,976 $1,696
Loss (income) from
discontinued
operations, net of
tax - - 1 2
--- --- --- ---
Income from
continuing
operations 517 428 1,977 1,698
Depreciation 79 75 299 292
Amortization 28 27 103 98
Working capital
(excluding pension
and taxes)* 178 629 (47) 247
Discontinued
operations (4) - (20) (21)
Net activity in
financing
receivables 18 22 46 68
Other 253 (737) 367 (367)
---- ---- ---- ----
Net operating
cash flow 1,069 444 2,725 2,015
Capital spending (142) (137) (280) (304)
Internal use
software spending (18) (16) (67) (74)
Acquisitions (334) - (334) (54)
Investment activity
and divestiture - - - 9
Dividends (118) (116) (473) (460)
Repurchases of
common stock (300) (680) (1,200) (1,700)
Debt issuance 496 - 496 -
Debt repayment (474) - (474) -
Other 21 3 (10) 172
--- --- --- ---
Total cash flow $200 $(502) $383 $(396)
==== ===== ==== =====
* Working capital (excluding pension and taxes) is a summation of changes
in: accounts receivable, net, contracts in process and advance payments
and billings in excess of costs incurred, inventories, prepaid expenses
and other current assets, accounts payable, accrued employee compensation,
and other accrued expenses from the Statements of Cash Flows.
Attachment F
Raytheon Company
Non-GAAP Financial Measures - FAS/CAS Adjusted Measures
Fourth Quarter 2009
FAS/CAS Adjusted EPS Non-GAAP Reconciliation
Fourth Quarter Full Year 2010 Guidance
-------------- --------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Diluted
earnings per
share from
continuing
operations
attributable
to Raytheon
Company
common
stockholders $1.30 $1.01* $4.89 $3.93*
Less: Per
share impact
of the FAS/
CAS Pension
Adjustment** 0.01 (0.05) 0.04 (0.19)
---- ----- ---- -----
FAS/CAS
Adjusted EPS
*** $1.29 $1.06 $4.85 $4.12
===== ===== ===== =====
** FAS/CAS
Pension
Adjustment $6 $(30) $27 $(123)
Tax affect (at
35.0% federal
statutory
rate) (2) 10 (9) 43
--- --- --- ---
After-tax
FAS/CAS
Pension
Adjustment 4 (20) 18 (80)
Diluted Shares 388.4 416.4 395.7 426.5
----- ----- ----- -----
Per share
impact of the
FAS/CAS
Pension
Adjustment $0.01 $(0.05) $0.04 $(0.19)
===== ====== ===== ======
2010 Guidance
-------------
Low end High end
of range of range
-------- --------
Diluted earnings per share from
continuing operations
attributable to Raytheon
Company common stockholders $4.75 $4.90
Less: Per share impact of the
FAS/CAS Pension Adjustment** (0.38) (0.38)
----- -----
FAS/CAS Adjusted EPS *** $5.13 $5.28
===== =====
** FAS/CAS Pension Adjustment $(220) $(220)
Tax affect (at 35.0% federal
statutory rate) 77 77
--- ---
After-tax FAS/CAS Pension
Adjustment (143) (143)
Diluted Shares 382.0 377.0
----- -----
Per share impact of the FAS/CAS
Pension Adjustment $(0.38) $(0.38)
====== ======
* Fourth quarter and full-year 2008 EPS from continuing operations
includes the $45 million ($69 million pretax) unfavorable adjustment
due to the impact of pension investment returns on existing
contracts in 2008.
FAS/CAS Adjusted Income from Continuing Operations attributable to
Raytheon Company common stockholders Non-GAAP Reconciliation
Fourth Quarter Full Year
-------------- ---------
2009 2008 2009 2008
---- ---- ---- ----
Income from Continuing
Operations attributable to
Raytheon Company common
stockholders $504 $421 $1,936 $1,674
FAS/CAS Pension Adjustment
(Tax affected at 35.0%
federal statutory rate) (4) 20 (18) 80
--- --- --- ---
FAS/CAS Adjusted Income
from Continuing Operations
attributable to Raytheon
common stockholders***
$500 $441 $1,918 $1,754
==== ==== ====== ======
*** These amounts are not measures of financial performance under
U.S. generally accepted accounting principles (GAAP). They should
be considered supplemental to and not a substitute for financial
performance in accordance with GAAP and may not be defined and
calculated by other companies in the same manner. FAS/CAS Adjusted
EPS is defined as EPS from continuing operations attributable to
Raytheon Company common stockholders excluding the earnings per
share impact of the FAS/CAS pension adjustment. FAS/CAS Adjusted
Income from Continuing Operations attributable to Raytheon Company
common stockholders is defined as Income from Continuing Operations
attributable to Raytheon Company common stockholders excluding the
impact of the FAS/CAS pension adjustment. We are providing these
measures, which exclude the impact of the FAS/CAS pension
adjustment, because management uses them for the purposes of
evaluating and forecasting the Company's financial performance and
we believe it allows investors to benefit from being able to assess
our operating performance in the context of how our principal
customer, the U.S. Government, allows us to recover pension costs
and to better compare our operating performance to others in the
industry on that same basis.
Attachment G
Raytheon Company
Preliminary Return on Invested Capital Non-GAAP Financial Measure
Fourth Quarter 2009
We define Return on Invested Capital (ROIC) as income from continuing
operations excluding the after-tax affect of the FAS/CAS Pension
Adjustment plus after-tax net interest expense plus one-third of
operating lease expense after-tax (estimate of interest portion of
operating lease expense) divided by average invested capital after
capitalizing operating leases (operating lease expense times a
multiplier of 8), adding financial guarantees less net investment in
Discontinued Operations, and adding back the impact of the
accounting standard for employers' accounting for defined benefit
pension and other postretirement plans. ROIC is not a measure of
financial performance under generally accepted accounting principles
(GAAP) and may not be defined and calculated by other companies in
the same manner. ROIC should be considered supplemental to and not
a substitute for financial information prepared in accordance with
GAAP. We use ROIC as a measure of efficiency and effectiveness of
our use of capital and as an element of management compensation.
Return on Invested Capital
(In millions, except
percentages) 2009 2010 Initial Guidance
---- ---------------------
Low end High end
of range of range
-------- --------
Income from continuing
operations $1,977
FAS/CAS Pension
Adjustment, after-tax * (18)
Net interest expense,
after-tax * 71 Combined Combined
Lease expense, after-tax * 66
---
Return $2,096 $2,155 $2,200
------ ------ ------
Net debt ** $(132)
Equity less investment in
discontinued operations 9,560
Lease expense x 8, plus
financial guarantees 2,815 Combined Combined
Minimum pension liability 5,007
-----
Invested capital from
continuing operations *** $17,250 $17,700 $17,500
------- ------- -------
ROIC 12.2% 12.2% 12.6%
---- ---- ----
* Federal statutory tax rate of 35.0%
** Net debt is defined as total debt less cash and cash equivalents
and is calculated using a 2 point average
*** Calculated using a 2 point average
SOURCE: Raytheon Company
Boeing Reports Strong 2009 Revenue & Cash Flow on Solid Core Performance
January 27, 2010 by Marcel van Leeuwen · 4 Comments
Fourth-Quarter 2009
- Revenue grew to $17.9 billion and operating margin grew to 9.4 percent, driving net income to $1.75 per share
- Operating cash flow increased to $3.2 billion
Full-Year 2009
- Revenue grew to $68.3 billion while earnings reflected solid core operating performance affected by previously announced events
- Operating cash flow of $5.6 billion reflects strong management of working capital
- Cash and marketable securities of $11.2 billion provides strong liquidity for 2010
- Backlog of $316 billion – over four times current annual revenue
Outlook
- 2010 EPS guidance of $3.70 to $4.00 reflects lower volumes and considers risks
Table 1. Summary Financial Results
(Dollars
in
Millions,
except
per Fourth Quarter Full Year
share -------------- -------------
data) 2009 2008 Change 2009 2008 Change
--------------------------------------------------------------------
Revenues $17,937 $12,664 42% $68,281 $60,909 12%
Earnings/
(Loss)
From
Operations $1,693 ($243) NA $2,096 $3,950 (47%)
Operating
Margin 9.4% (1.9%) 11.3 Pts 3.1% 6.5% (3.4)Pts
Net
Income/
(Loss) $1,268 ($86) NA $1,312 $2,672 (51%)
Earnings/
(Loss)
per
Share $1.75 ($0.12) NA $1.84 $3.67 (50%)
Operating
Cash
Flow $3,212 ($1,641) NA $5,603 ($401) NA
The Boeing Company (NYSE: BA) reported fourth-quarter net income of $1.3 billion, or $1.75 per share, as revenue rose 42 percent to $17.9 billion. Current period results reflect solid performance across core businesses and represent a significant improvement over the year-ago quarter, which included a labor strike and a charge on the 747 program (Table 1).
Revenue for the full year reached a record $68.3 billion on higher commercial deliveries and growth in Defense, Space & Security. Earnings for the year declined to $1.84 per share due to a combined $3.58 per share impact from previously announced 787 and 747 events in Commercial Airplanes. Earnings for 2008 of $3.67 per share included a combined $2.56 per share impact primarily due to a labor strike and charges on the 747 program.
Earnings guidance for 2010 has been established at $3.70 to $4.00 per share, reflecting the previously announced 777 production rate reduction, reduced scope on Army modernization and missile defense programs, and some consideration for development program and market risks.
“We put a strong finish on 2009 by getting the 787 in the air and generating solid core operating performance across the company,” said Jim McNerney, Boeing chairman, president and chief executive officer. “Focus areas for 2010 are to continue our strong operational performance, certify and deliver the 787 and 747-8, and further reposition our defense, space and security business. While the challenges ahead are significant, I believe we have the people and the resources we need to be successful and to begin consistently delivering on this company’s great potential.”
Boeing’s quarterly operating cash flow was $3.2 billion, which includes higher cash receipts than the strike-affected period a year ago partially offset by continued investment in development programs (Table 2). For the full year, operating cash flow was $5.6 billion. Free cash flow* was $3.0 billion in the quarter and $4.4 billion for the year.
Table 2. Cash Flow
Fourth Quarter Full Year
-------------- ---------------
(Millions) 2009 2008 2009 2008
-------------------------------------------------------------------------
Operating Cash Flow (1) $3,212 ($1,641) $5,603 ($401)
Less Additions to
Property, Plant &
Equipment ($221) ($445) ($1,186) ($1,674)
--------------------------------------
Free Cash Flow* $2,991 ($2,086) $4,417 ($2,075)
(1) Operating cash flow for the full year includes cash
contributions to pension plans of $82 million in 2009
and $531 million in 2008.
* Non-GAAP measure. A complete definition and
reconciliation of Boeing's use of non-GAAP measures,
identified by an asterisk (*), is found on page 8, "Non-GAAP
Measure Disclosure."
Cash and investments in marketable securities totaled $11.2 billion at year-end, up 70 percent in the quarter. The cash position was improved by the issuance of $2.2 billion in debt during the quarter and disciplined operational management (Table 3).
Table 3. Cash, Marketable Securities and Debt Balances
Quarter-End
-------------
(Billions) 4Q09 3Q09
----------------------------------------------------------------
Cash $9.2 $6.1
Marketable Securities(1) $2.0 $0.5
---- ----
Total $11.2 $6.6
Debt Balances:
The Boeing Company $8.8 $7.6
Boeing Capital Corporation $4.1 $3.4
---- ----
Total Consolidated Debt $12.9 $11.0
(1) Marketable securities consists primarily of time deposits
due within one year classified as "short-term investments."
Total company backlog at quarter-end was $316 billion, down 1 percent in the quarter, as backlog for both Commercial Airplanes and Defense, Space & Security declined during the period.
Segment Results
Commercial Airplanes
Boeing Commercial Airplane’s fourth-quarter revenue doubled to $9.2 billion. A labor strike reduced revenue in the year-ago period by an estimated $4.3 billion. The current period operating margins of 11.1 percent reflect strong operating performance and model mix, while earnings for the year-ago quarter were reduced by the labor strike and a 747 charge (Table 4).
For the full year, revenue rose to $34.1 billion on higher airplane deliveries partially offset by lower services volume. Commercial Airplanes posted a loss for the year of $0.6 billion driven by previously announced 787 and 747 impacts. The 787 impact, which reduced 2009 operating earnings by $2.7 billion, resulted from the reclassification of costs for the first three flight-test airplanes from program inventory to research and development expense. On the 747, higher costs and difficult market conditions resulted in previously announced charges totaling $1.4 billion. Combined, these events reduced the unit’s reported operating margin by 11.9 points.
Table 4. Commercial Airplanes Operating Results
Fourth Quarter Full Year
(Dollars in -------------- --------------
Millions) 2009 2008 Change 2009 2008 Change
-----------------------------------------------------------------------
Commercial
Airplanes
Deliveries 122 50 144% 481 375 28%
Revenues $9,183 $4,589 100% $34,051 $28,263 20%
Earnings/
(Loss) from
Operations $1,020 ($968) NA ($583) $1,186 NA
Operating
Margins 11.1% (21.1%) NA (1.7%) 4.2% NA
Commercial Airplanes booked 82 gross orders during the quarter while 20 others were removed from its order book. Contractual backlog remains strong with 3,375 airplanes valued at $250 billion, more than seven times the unit’s 2009 revenue.
The 787 program entered flight testing during the quarter with the first two airplanes completing first flights. The remaining four flight-test airplanes are expected to be flying by the end of the second quarter. First delivery is scheduled for the fourth quarter of 2010. During the quarter, the company completed its acquisition of Global Aeronautica and broke ground in South Carolina for the second 787 assembly line. Total firm orders for the 787 at quarter-end were 851 airplanes from 56 customers.
The 747-8 program expects its first flight in the near future which will begin the flight-test phase of the program. Initial delivery is expected in the fourth quarter of 2010.
Boeing Defense, Space & Security
Boeing Defense, Space & Security’s fourth-quarter revenue rose 6 percent to $8.5 billion on increased military aircraft deliveries and higher volume in services. Operating margins were 9.7 percent reflecting strong performance in Boeing Military Aircraft and Global Services & Support partially offset by additional costs on the Airborne Early Warning and Control (AEW&C) program which reduced margins by 1.6 points (Table 5).
For the full year, revenue increased by 5 percent to $33.7 billion on growth in Global Services & Support and Boeing Military Aircraft segments. Operating earnings grew 2 percent to $3.3 billion, producing operating margins of 9.8 percent.
Table 5. Boeing Defense, Space & Security Operating Results
(Dollars Fourth Quarter Full Year
In -------------- --------------
Millions) 2009 2008 Change 2009 2008 Change
----------------------------------------------------------------------
Revenues
Boeing
Military
Aircraft $3,733 $3,142 19% $14,057 $13,311 6%
Network &
Space
Systems $2,385 $2,861 (17%) $10,877 $11,346 (4%)
Global
Services&
Support $2,429 $2,038 19% $8,727 $7,390 18%
------ ------ ------ ------
Total BDS
Revenues $8,547 $8,041 6% $33,661 $32,047 5%
Earnings
from
Operations
Boeing
Military
Aircraft $353 $348 1% $1,513 $1,277 18%
Network &
Space
Systems $141 $228 (38%) $839 $1,034 (19%)
Global
Services &
Support $335 $305 10% $947 $921 3%
---- ---- ---- ----
Total
BDS
Earnings
from
Operations $829 $881 (6%) $3,299 $3,232 2%
Operating
Margins 9.7% 11.0% (1.3)Pts 9.8% 10.1% (0.3)Pts
Boeing Military Aircraft (BMA) fourth-quarter revenue rose 19 percent to $3.7 billion and operating margin was 9.5 percent, reflecting higher aircraft deliveries, improved delivery mix and strong execution across its programs, partially offset by higher costs on the AEW&C program which reduced BMA margins by 3.5 points. During the quarter, BMA delivered 32 aircraft, the EA-18G was approved for full-rate production, and the C-17 won new international orders.
Network & Space Systems fourth-quarter revenue was $2.4 billion, reduced primarily by lower volume on combat systems and missile defense. Operating margin was 5.9 percent reflecting solid performance across the segment’s array of programs partially offset by a write-down of Delta II inventory and a contract settlement in satellites. During the quarter, the Brigade Combat Team Modernization Increment 1 was approved to enter low rate initial production.
Global Services & Support (GS&S) revenue increased 19 percent on higher volume across its broad portfolio of services and logistics products. During the quarter, GS&S operating margins were 13.8 percent driven by strong operating performance. In this segment, the KC-135 Programmed Depot Maintenance contract award was reinstated, and the company was awarded several Department of Energy Smart Grid grants.
Backlog at Defense, Space & Security is $64.8 billion, approximately two times expected 2010 revenue. The reduction in backlog was driven by run-off of multi-year contracts that exceeded additions to backlog and by termination of a portion of the Brigade Combat Team Modernization contract due to changing US defense priorities.
Boeing Capital Corporation
Boeing Capital Corporation (BCC) reported fourth-quarter pre-tax earnings of $14 million compared to $19 million in the same period last year (Table 6). During the quarter, BCC’s portfolio balance declined slightly to $5.7 billion, down from $6.0 billion at the beginning of the year and from $6.1 billion at the end of the third quarter, on customer payments and depreciation. BCC contributed $93 million in cash dividends to the company during the full year. BCC’s debt-to-equity ratio increased to 5.8-to-1.
Table 6. Boeing Capital Corporation Operating Results
Fourth Quarter Full Year
-------------- ------------
(Dollars in Millions) 2009 2008 Change 2009 2008 Change
----------------------------------------------------------------------
Revenues $164 $168 (2%) $660 $703 (6%)
Earnings from Operations $14 $19 (26%) $126 $162 (22%)
Additional Information
The “Other” segment consists primarily of Boeing Engineering, Operations and Technology, as well as certain results related to the financial consolidation of all business units. Other segment expense was $47 million in the fourth quarter, down from $74 million in the same period last year.
Total pension expense for the fourth quarter was $223 million, as compared to $113 million in the same period last year. A total of $264 million was recognized in the operating segments in the quarter (up from $99 million in the same period last year), partially offset by a $41 million contribution to earnings in unallocated items. The company made a discretionary contribution of 29.2 million shares of Boeing common stock, valued at $1.5 billion, to its pension plans during the quarter.
Unallocated expense was $123 million, up from $101 million in the same quarter last year, driven by higher deferred compensation expense partially offset by lower unallocated pension expense and intersegment eliminations.
Interest expense for the quarter was $110 million, up from $57 million in the same period last year due to additional debt issued in 2009. Other income/(expense) decreased $23 million driven by lower interest earned on cash balances.
Outlook
The company’s 2010 financial guidance reflects solid operating performance amid lower volumes, higher pension expense and continued investment in development programs (Table 7).
Boeing’s 2010 revenue guidance is $64 billion to $66 billion and reflects previously announced production rate reductions on 777 and reduced scope on Army modernization and missile defense. Earnings guidance for 2010 of $3.70 to $4.00 per share reflects the lower revenue and includes some consideration for development program and market risks. Operating cash flow is expected to be approximately zero in 2010, including less than $100 million of pension contributions, as the company continues to build inventory on key development programs.
The company expects that 2011 revenue will be higher than 2010, primarily driven by higher estimates of 787 and 747-8 deliveries. Combining higher estimated deliveries with plans for R&D and other factors, operating cash flow in 2011 is expected to be greater than $5 billion.
Commercial Airplanes’ 2010 delivery guidance is established at between 460 and 465 airplanes (reflecting fewer twin-aisle deliveries) and is sold out. It includes the first few 787 and 747-8 deliveries, which are expected to begin in the fourth quarter. The unit’s 2010 revenue is expected to be $31 billion to $32 billion with operating margins between 6.5 percent and 7.5 percent.
Defense, Space & Security’s revenue for 2010 is expected to be $32 billion to $33 billion with operating margins of approximately 10 percent.
Boeing Capital Corporation expects that its aircraft finance portfolio will continue to reduce as its expected new aircraft financing for 2010 is less than $0.5 billion, below normal portfolio runoff through customer payments and depreciation. BCC’s debt-to-equity ratio is expected to return to the 5.0-to-1 level in the second half of 2010.
Table 7. Financial Outlook
(Dollars in Billions, except per-share data) 2010
-------------------------------------------------------------
The Boeing Company
Revenue $64 - $66
Earnings Per Share (GAAP) $3.70 - $4.00
Operating Cash Flow(1) ~ $0
Boeing Commercial
Airplanes
Deliveries 460 - 465
Revenue $31 - $32
Operating Margin 6.5% - 7.5%
Boeing Defense, Space & Security
Revenue
Boeing Military Aircraft ~ $15
Network & Space Systems ~ $9
Global Services & Support ~ $8.5
----------
Total BDS Revenue $32 - $33
Operating Margin
Boeing Military Aircraft ~ 10.5%
Network & Space Systems ~ 8.5%
Global Services & Support ~ 11%
----------
Total BDS Operating Margin ~ 10%
Boeing Capital
Corporation
Portfolio Size Lower
Revenue ~ $0.6
Return on Assets > 1.0%
Research & Development $3.9 - $4.1
Capital Expenditures ~ $1.9
(1) After cash pension contributions of less than $0.1 billion and
assuming new aircraft financings under $0.5 billion.
Boeing’s 2010 R&D forecast is $3.9 billion to $4.1 billion on continued investment in development programs, including an operating model adjustment to better balance future R&D efforts at Commercial Airplanes. R&D is expected to decrease significantly in 2011. Capital expenditures for 2010 are expected to be approximately $1.9 billion reflecting the bulk of capital investments required for the second 787 assembly line in South Carolina. Capital expenditures in 2011 are expected to be lower than in 2010.
The company’s non-cash pension expense is expected to be approximately $1.2 billion in 2010.
Non-GAAP Measure Disclosure
Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by an asterisk *) used in this report provide investors with important perspectives into the company’s ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. The following definitions are provided:
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow less capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow internally to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.
Forward-Looking Information Is Subject to Risk and Uncertainty
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to 2010 and 2011 financial and operating performance, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) risks attributable to our reliance on our commercial customers, our suppliers and the worldwide market; (3) risks related to our dependence on U.S. government contracts; (4) our reliance on fixed-price contracts, which could subject us to losses in the event of cost overruns; (5) risks related to cost-type contracts; (6) uncertainties concerning contracts that include in-orbit incentive payments; (7) changes in accounting estimates; (8) significant changes in discount rates and actual investment return on pension assets; (9) work stoppages or other labor disruptions; (10) changes in the competitive landscape in the markets in which we operate; (11) risks related to our doing business in other countries, including sales to non-U.S. customers; (12) potential adverse developments in new or pending litigation and/or government investigations; (13) changes in the financial condition or regulatory landscape of the commercial airline industry as they relate to Boeing Capital Corporation; (14) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (15) risks related to realizing the anticipated benefits of merger, acquisitions, joint ventures/strategic alliance or divestitures; (16) adequacy of our insurance coverage to cover significant risk exposures; and (17) potential business disruptions related to physical security threats, IT attacks or natural disasters.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to publicly update any forward-looking statement, except as required by law.
Contact:
Investor Relations: Diana Sands or Rob Young (312) 544-2140
Communications: Todd Blecher or Chaz Bickers (312) 544-2002
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Twelve months Three months
ended ended
December 31 December 31
(Dollars in millions, except per
share data) 2009 2008 2009 2008
-----------------------------------------------------------------------
Sales of products $57,032 $50,180 $14,934 $9,787
Sales of services 11,249 10,729 3,003 2,877
-----------------------------------------------------------------------
Total revenues 68,281 60,909 17,937 12,664
Cost of products (47,639) (41,662) (12,207) (8,926)
Cost of services (8,726) (8,467) (2,258) (2,288)
Boeing Capital Corporation interest
expense (175) (223) (43) (50)
-----------------------------------------------------------------------
Total costs and expenses (56,540) (50,352) (14,508) (11,264)
-----------------------------------------------------------------------
11,741 10,557 3,429 1,400
Income from operating investments,
net 249 241 63 46
General and administrative expense (3,364) (3,084) (780) (734)
Research and development expense,
net (6,506) (3,768) (1,002) (957)
(Loss)/gain on dispositions, net (24) 4 (17) 2
-----------------------------------------------------------------------
Earnings/(loss) from operations 2,096 3,950 1,693 (243)
Other income/(loss), net (26) 247 (33) (10)
Interest and debt expense (339) (202) (110) (57)
-----------------------------------------------------------------------
Earnings/(loss) before income taxes 1,731 3,995 1,550 (310)
Income tax (expense)/benefit (396) (1,341) (267) 224
-----------------------------------------------------------------------
Net earnings/(loss) from continuing
operations 1,335 2,654 1,283 (86)
Net (loss)/gain on disposal of
discontinued operations, net of tax
of $13, ($10), $8 (23) 18 (15)
-----------------------------------------------------------------------
Net earnings/(loss) $1,312 $2,672 $1,268 $(86)
=======================================================================
Basic earnings/(loss) per share
from continuing operations $1.89 $3.68 $1.79 $(0.12)
Net (loss)/gain on disposal of
discontinued operations, net of
taxes (0.03) 0.02 (0.02)
-----------------------------------------------------------------------
Basic earnings/(loss) per share $1.86 $3.70 $1.77 $(0.12)
=============================== ===== ===== ===== ======
Diluted earnings/(loss) per share
from continuing operations $1.87 $3.65 $1.77 ($0.12)
Net (loss)/gain on disposal of
discontinued operations, net of
taxes (0.03) 0.02 (0.02)
-----------------------------------------------------------------------
Diluted earnings/(loss) per share $1.84 $3.67 $1.75 $(0.12)
=======================================================================
Cash dividends paid per share $1.68 $1.60 $0.42 $0.40
=======================================================================
Weighted average diluted shares
(millions) 713.4 729.0 723.9 706.0
=======================================================================
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
December 31 December 31
(Dollars in millions except per share data) 2009 2008
----------------------------------------------------------------------
Assets
Cash and cash equivalents 9,215 $3,268
Short-term investments 2,008 11
Accounts receivable, net 5,785 5,602
Current portion of customer financing, net 368 425
Deferred income taxes 966 1,046
Inventories, net of advances and progress
billings 16,933 15,612
----------------------------------------------------------------------
Total current assets 35,275 25,964
Customer financing, net 5,466 5,857
Property, plant and equipment, net of
accumulated depreciation of
$12,795 and $12,280 8,784 8,762
Goodwill 4,319 3,647
Other acquired intangibles, net 2,877 2,685
Deferred income taxes 3,062 4,114
Investments 1,030 1,328
Pension plan assets, net 16 16
Other assets, net of accumulated
amortization of $492 and $400 1,224 1,406
----------------------------------------------------------------------
Total assets $62,053 $53,779
============ ======= =======
Liabilities and shareholders' equity
Accounts payable 7,096 $5,871
Other accrued liabilities 12,822 11,564
Advances and billings in excess of related
costs 12,076 12,737
Income taxes payable 182 41
Short-term debt and current portion of long-
term debt 707 560
----------------------------------------------------------------------
Total current liabilities 32,883 30,773
Deferred income taxes
Accrued retiree health care 7,049 7,322
Accrued pension plan liability, net 6,315 8,383
Non-current income taxes payable 827 1,154
Other long-term liabilities 537 337
Long-term debt 12,217 6,952
Shareholders' equity:
Common shares, par value $5.00 -
1,200,000,000 shares authorized;
1,012,261,159 and 1,012,261,159 shares
issued 5,061 5,061
Additional paid-in capital 3,724 3,456
Treasury shares, at cost - 256,406,709 and
285,661,944 (15,911) (17,758)
Retained earnings 22,746 22,675
Accumulated other comprehensive loss (11,877) (13,525)
ShareValue Trust shares - 29,563,324 and
28,460,769 (1,615) (1,203)
----------------------------------------------------------------------
Total Boeing shareholders' equity 2,128 (1,294)
Noncontrolling interest 97 152
----------------------------------------------------------------------
Total shareholders' equity 2,225 (1,142)
----------------------------------------------------------------------
Total liabilities and shareholders'
equity $62,053 $53,779
======================================================================
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Twelve months
ended
December 31
(Dollars in millions) 2009 2008
----------------------------------------------------------------------
Cash flows - operating activities:
Net earnings $1,312 $2,672
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Non-cash items -
Share-based plans expense 238 209
Depreciation 1,459 1,325
Amortization of other acquired intangibles 207 166
Amortization of debt discount/premium and
issuance costs 12 11
Investment/asset impairment charges, net 151 50
Customer financing valuation provision 45 84
Loss/(gain) on disposal of discontinued
operations 36 (28)
Loss/(gain) on dispositions, net 24 (4)
Other charges and credits, net 214 116
Excess tax benefits from share-based payment
arrangements (5) (100)
Changes in assets and liabilities -
Accounts receivable (391) 564
Inventories, net of advances and progress
billings (1,525) (6,168)
Accounts payable 1,141 318
Other accrued liabilities 1,327 554
Advances and billings in excess of related
costs (680) (1,120)
Income taxes receivable, payable and
deferred 607 744
Other long-term liabilities (12) (211)
Pension and other postretirement plans 1,140 14
Customer financing, net 104 432
Other 199 (29)
----------------------------------------------------------------------
Net cash provided by operating
activities 5,603 (401)
----------------------------------------------------------------------
Cash flows - investing activities:
Property, plant and equipment additions (1,186) (1,674)
Property, plant and equipment reductions 27 34
Acquisitions, net of cash acquired (639) (964)
Contributions to investments (2,629) (6,673)
Proceeds from investments 1,041 11,343
Payments on Sea Launch guarantees (448)
Reimbursements of Sea Launch guarantee payments 40
Purchase of distribution rights (178)
----------------------------------------------------------------------
Net cash (used)/provided by investing
activities (3,794) 1,888
----------------------------------------------------------------------
Cash flows - financing activities:
New borrowings 5,961 13
Debt repayments (551) (738)
Payments to non-controlling interests (40)
Repayments of distribution rights financing (357)
Stock options exercised, other 10 44
Excess tax benefits from share-based payment
arrangements 5 100
Employee taxes on certain share-based payment
arrangements (21) (135)
Common shares repurchased (50) (2,937)
Dividends paid (1,220) (1,192)
----------------------------------------------------------------------
Net cash provided/(used) by financing
activities 4,094 (5,202)
----------------------------------------------------------------------
Effect of exchange rate changes on cash and cash
equivalents 44 (59)
----------------------------------------------------------------------
Net increase/(decrease) in cash and cash equivalents 5,947 (3,774)
Cash and cash equivalents at beginning of year 3,268 7,042
----------------------------------------------------------------------
Cash and cash equivalents at end of period $9,215 $3,268
======================================================================
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Twelve months Three months
ended ended
December 31 December 31
(Dollars in millions) 2009 2008 2009 2008
----------------------------------------------------------------------
Revenues:
Commercial Airplanes $34,051 $28,263 $9,183 $4,589
Boeing Defense, Space & Security:
Boeing Military Aircraft 14,057 13,311 3,733 3,142
Network & Space Systems 10,877 11,346 2,385 2,861
Global Services & Support 8,727 7,390 2,429 2,038
----------------------------------------------------------------------
Total Boeing Defense, Space &
Security 33,661 32,047 8,547 8,041
Boeing Capital Corporation 660 703 164 168
Other segment 165 567 40 40
Unallocated items and
eliminations (256) (671) 3 (174)
----------------------------------------------------------------------
Total revenues $68,281 $60,909 $17,937 $12,664
======================================================================
Earnings/(loss) from operations:
Commercial Airplanes $(583) $1,186 $1,020 $(968)
Boeing Defense, Space & Security:
Boeing Military Aircraft 1,513 1,277 353 348
Network & Space Systems 839 1,034 141 228
Global Services & Support 947 921 335 305
----------------------------------------------------------------------
Total Boeing Defense, Space &
Security 3,299 3,232 829 881
Boeing Capital Corporation 126 162 14 19
Other segment (152) (307) (47) (74)
Unallocated items and
eliminations (594) (323) (123) (101)
----------------------------------------------------------------------
Earnings/(loss) from operations 2,096 3,950 1,693 (243)
Other income/(loss), net (26) 247 (33) (10)
Interest and debt expense (339) (202) (110) (57)
----------------------------------------------------------------------
Earnings/(loss) before income
taxes 1,731 3,995 1,550 (310)
Income tax (expense)/benefit (396) (1,341) (267) 224
----------------------------------------------------------------------
Net earnings/(loss) from
continuing operations 1,335 2,654 1,283 (86)
Net (loss)/gain on disposal
of discontinued operations,
net of taxes of $13, ($10), $8 (23) 18 (15)
----------------------------------------------------------------------
Net earnings/(loss) $1,312 $2,672 $1,268 $(86)
======================================================================
Research and development expense, net:
Commercial Airplanes $5,383 $2,838 $741 $730
Boeing Defense, Space & Security:
Boeing Military Aircraft 541 479 111 118
Network & Space Systems 397 298 104 71
Global Services & Support 163 156 37 43
----------------------------------------------------------------------
Total Boeing Defense, Space &
Security 1,101 933 252 232
Other segment 22 (3) 9 (5)
----------------------------------------------------------------------
Total research and development
expense, net $6,506 $3,768 $1,002 $957
======================================================================
Unallocated items and eliminations:
Share-based plans expense $(189) $(149) $(49) $(34)
Deferred compensation expense (158) 223 (24) 87
Pension 110 (208) 41 (14)
Post-retirement (93) (79) (32) (19)
Capitalized interest (53) (44) (11) (6)
Other (211) (66) (48) (115)
----------------------------------------------------------------------
Total $(594) $(323) $(123) $(101)
======================================================================
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Twelve months Three months
ended ended
Deliveries December 31 December 31
-----------------------------------------------------------------
Commercial Airplanes 2009 2008 2009 2008
-----------------------------------------------------------------
737 Next-Generation 372 290 92 36
747 8 14 2 1
767 13 10 3 2
777 88 61 25 11
-----------------------------------------------------------------
Total 481 375 122 50
=================================================================
-----------------------------------------------------------------
Boeing Defense, Space & Security
-----------------------------------------------------------------
Boeing Military Aircraft
F/A-18 Models 49 45 13 12
F-15E Eagle 13 14 3 3
C-17 Globemaster 16 16 4 4
KC-767 Tanker 2 2 1
CH-47 Chinook 11 12 7 4
T-45TS Goshawk 7 7 1 2
AH-64 Apache 23 3 3 1
Network & Space Systems
Delta II 1 2 1 1
Delta IV 1
Commercial and Civil Satellites 3 1 1
Military Satellites 3
December 31 September 30 December 31
Contractual backlog (Dollars in
billions) 2009 2009 2008
-------------------------------------------------------------------------
Commercial Airplanes $250.5 $253.9 $278.6
Boeing Defense, Space & Security:
Boeing Military Aircraft 26.3 26.1 25.7
Network & Space Systems 7.7 7.8 8.9
Global Services & Support 12.0 11.1 10.7
-------------------------------------------------------------------------
Total Boeing Defense, Space &
Security 46.0 45.0 45.3
-------------------------------------------------------------------------
Total contractual backlog $296.5 $298.9 $323.9
=========================================================================
Unobligated backlog $19.1 $21.1 $28.2
=========================================================================
Total backlog $315.6 $320.0 $352.1
=========================================================================
Workforce 157,100 158,300 162,200
=========================================================================
SOURCE: The Boeing Company
Mideast air traffic soars 19 pct in December
January 27, 2010 by Marcel van Leeuwen · Leave a Comment
DUBAI – Middle East airlines posted a 19 percent rise in passenger growth in December on the year-earlier period, closing one of the worst years for the global aviation industry on a high note, industry figures showed on Wednesday.
Global passenger demand improved 4.5 percent in December, but demand for the whole of 2009 still witnessed its largest ever post-war decline, the International Air Transport Association (IATA) said.
Carriers in the region achieved an 11.2 percent increase in full-year demand, IATA said.
“These gains result from Middle Eastern carriers taking a larger share of long-haul connecting traffic over their hubs,” it said in a statement.
The Middle East region consistently outperformed the rest of the world last year, maintaining positive growth most months despite the global recession.
Global passenger demand for the full year was down 3.5 percent, IATA said.
“In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen,” Giovanni Bisignani, IATA director-general and CEO, said in the statement.
“We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business.”
Middle East freight demand also showed a significant improvement in December over the same month the previous year, climbing 32.1 percent to end the year up 3.9 percent.
Globally freight demand jumped a 24.4 percent during the month, which IATA put down to an “exceptionally” weak performance in December 2008. Full-year global freight demand declined 10.1 percent, IATA said.
However, the body said “optimism is returning to the industry as purchasing managers survey indicators reached a 44-month high in December pointing towards increased freight volumes in the coming months”.
Source: business.maktoob.com
Eurocopter meets 2009 Turnover and Delivery Objectives – Civil Orders decrease while military Orders increase
January 25, 2010 by Rob Vogelaar · Leave a Comment
Eurocopter, the world’s leading helicopter manufacturer, met its business and delivery objectives for 2009 and stabilised its turnover at the level of its record year, 2008. The world economic crisis caused a sharp order decline in the civil market for light helicopters. However, governmental orders have over-compensated in value the drop in commercial unit sales, leading to the second-best result of order intakes in Eurocopter’s history. In line with Eurocopter’s roadmap, the Support and Services business was also strengthened with the signature of a number of significant contracts.
Deliveries remained stable with 558 new civil and military helicopters delivered in 2009 and almost matching the peak level of 2008. This figure reinforces Eurocopter’s position as a major branded business division within EADS, accounting for a consolidated turnover of 4.6 billion Euros.
Order bookings suffered a decline in terms of units sold, but not in value. A net total of 344 new aircraft, including 81 Super Puma/Cougar/EC225/EC725 family helicopters, were sold, amounting to 5.8 billion Euros. With around 460 gross orders, Eurocopter secured its No. 1 market position in the civil and parapublic market. The company’s total order backlog at the end of 2009 amounted to a robust 1,300 helicopters or the equivalent of 15.1 billion Euros, an increase of more than 1 billion Euros compared to the end of 2008.
While governmental markets remain stable despite of budget constraints, a full recovery of the commercial markets in 2010 is not evident. The lower order intake for light helicopters in 2009 will lead to lower production rates in 2010, while military helicopter rates will increase, a situation Eurocopter should be able to manage with its built-in flexibility.
Consolidated turnover
55 percent of the company’s turnover achieved in 2009 was related to serial helicopters (equalling 2.5 billion Euros), 35 percent (1.6 billion Euros) derived out of support and services, whereas 10 percent (0.5 billion Euros) were realized from development and other activities.
While 52 percent of the turnover derived from civil and parapublic sales, 48 percent was related to Eurocopter’s military products. The company thereby retained its healthy balance between the civil and military markets. The export share is 65 percent, with 35 percent achieved in the company’s domestic markets (i.e., France, Germany, Spain), proving Eurocopter’s successful strategy of expanding its activities to emerging markets.
Order bookings
The breakdown of order bookings is as follows: serial helicopters 65 percent (3.8 billion Euros), support and services 31 percent (1.8 billion Euros) and development and other activities 4 percent (0.2 billion Euros). Eurocopter’s bookings for support and services have grown consistently by an average of 10 to 15 percent over the past three years.
Regarding the 2009 bookings, military and civil products count for 70 and 30 percent respectively. The total export rate amounts to 66 percent.
Bookings related to product range
2009 orders were placed for 344 production helicopters as follows:
- 8 units of EC120 Colibri
- 103 units of the AS350/355 Ecureuil/Fennec/EC130 family
- 58 units of EC135
- 63 units of EC145 (including 51 UH-72A Lakota)
- 9 units of the Dauphin/Panther/EC155 family
- 81 units of the Super Puma/CougarEC225/EC725 family
- 22 NH90
Eurocopter CEO Lutz Bertling stated, “Our global industrial footprint and our comprehensive, innovative product and services portfolio have proven to be an asset in this difficult economic period. Not all geographic areas and market segments are equally affected by the crisis. The downturn in the corporate, tourism and EMS markets which typically acquire smaller helicopters has been countered by a stable oil and gas market due to new exploration activities, and by a strong military market. Our decision to focus, in 2009, on governmental and services orders has proven to be right and allowed us to increase our backlog by more than 1 billion Euros. While the United States and Eastern Europe, for instance, have been heavily affected by the crisis, Latin America, Asia and Western Europe kept up relatively well. In 2009, we have continued to expand our industrial presence in the UK, Japan, the USA, Australia, Brazil, Singapore and Thailand, while at the same time investing more resources into Research & Development and new products. We will be ready for future market requirements when the economy recovers.”
Eurocopter’s key highlights in 2009 were the roll-out of the KUH (Korean Utility Helicopter), developed jointly with Korea Aerospace Industries, on July 31, and the maiden flight of the EC175, a joint development with Avic of China, on December 4. Both programmes are precisely on schedule and show great market potential already at this early stage
.
The Tiger has been deployed to Afghanistan by the French Armed Forces, proving unparalleled reliability and serviceability in the operational theatre. NH90 deliveries have continued throughout 2009 with a fleet of 40 helicopters in the tactical transport version now in service in five countries. The first naval NH90 has been handed over to the Netherlands.
Deliveries of the UH-72A Lakota for the US Army and Navy are approaching 100, all of them on time or even ahead of schedule. An order for a further 51 Lakotas was placed in December. The deployed Lakota fleet has accumulated over 21,000 flight hours to date, Eurocopter’s Support and Services section booked three major orders, one for the retrofit of 26 German Army CH53s for personnel recovery mission, one for the Life Extension of 28 Royal Air Force Pumas, and one for the retrofit of 34 Brazilian Army Panthers. The range of Eurocopter’s services has also been expanded substantially in 2009, with the inauguration of new simulators at Helisim, HFTS, American Eurocopter and Eurocopter Deutschland, the installation of 24/7 customer service centres in Hong Kong and Dallas, a new logistics platform in France, and guaranteed ad hoc support to all customers.
Challenges for 2010
Facing an unpredictable market situation, Eurocopter has launched an internal programme designated SHAPE with the following aims:
1. Save cash (short term), implement cost reductions to save €200 million per year, and reduce inventory, both to generate the cash for investing in the company’s future.
2. Improve productivity and efficiency, implement faster, simplified processes.
3. Invest into new projects such as the X4 (successor for the Dauphin), the Aerial Armed Scout proposed to the US Army together with Lockheed Martin, and the Future Transport Helicopter. In addition, Eurocopter will boost environmental, safety and performance/cost technologies for the benefit of its customers. With bluecopter® by Eurocopter, environmental friendliness has become a focus for Eurocopter’s innovation works.
The company’s SHAPE programme is the right step towards implementing the Eurocopter Vision 2020. With these targets, combined with its strong order backlog, Eurocoper is well-placed to weather the challenges of the years to come.
Boeing 2009 deliveries
January 21, 2010 by Rob Vogelaar · Leave a Comment
| Current Year Deliveries Through December 2009 |
737 | 747 | 767 | 777 | Total |
|---|---|---|---|---|---|
| Total 2009 Deliveries | 372 | 8 | 13 | 88 | 481 |
| Aerolineas Argentinas | 2 | 2 | |||
| Air Berlin | 7 | 7 | |||
| Air Canada | 1 | 1 | |||
| Air China | 9 | 9 | |||
| Air Europa | 3 | 3 | |||
| Air France | 7 | 7 | |||
| Air India | 5 | 7 | 12 | ||
| AirTran Airways | 2 | 2 | |||
| Alaska Airlines | 10 | 10 | |||
| All Nippon Airways | 7 | 1 | 1 | 9 | |
| American Airlines | 31 | 31 | |||
| Arik Air | 1 | 1 | |||
| Aviation Capital Group | 3 | 3 | |||
| BOC Aviation | 9 | 9 | |||
| British Airways | 4 | 4 | |||
| Business Jet / VIP Customer(s) | 5 | 1 | 1 | 7 | |
| Cathay Pacific Airways | 4 | 5 | 9 | ||
| China Eastern Airlines | 11 | 11 | |||
| China Southern Airlines | 8 | 2 | 10 | ||
| Continental Airlines | 13 | 13 | |||
| COPA Airlines | 1 | 1 | |||
| Delta Air Lines | 16 | 6 | 22 | ||
| Deucalion Capital VII Limited | 4 | 4 | |||
| DHL International | 3 | 3 | |||
| Dubai Aerospace Enterprise | 2 | 2 | |||
| Egyptair | 7 | 7 | |||
| Emirates | 10 | 10 | |||
| Etihad Airways | 1 | 1 | |||
| EVA Air | 3 | 3 | |||
| FedEx | 3 | 3 | |||
| flydubai | 6 | 6 | |||
| Garuda Indonesia | 5 | 5 | |||
| GECAS | 25 | 7 | 32 | ||
| GOL Airlines | 14 | 14 | |||
| Guggenheim Aviation Partners | 1 | 1 | |||
| Hainan Airlines | 11 | 11 | |||
| ILFC | 12 | 4 | 16 | ||
| Integrated Defense Systems | 2 | 2 | |||
| JAL International | 9 | 4 | 3 | 16 | |
| Jet Lite | 1 | 1 | |||
| KLM – Royal Dutch Airlines | 2 | 2 | 4 | ||
| Korean Air | 2 | 2 | |||
| LAN Airlines | 2 | 2 | |||
| Lion Air | 13 | 13 | |||
| LoadAir Cargo | 2 | 2 | |||
| Nippon Cargo Airlines | 1 | 1 | |||
| Norwegian Air Shuttle ASA | 2 | 2 | |||
| Pegasus Airlines | 3 | 3 | |||
| Qantas | 3 | 3 | |||
| Qatar Airways | 8 | 8 | |||
| Royal Air Maroc | 2 | 2 | |||
| Ryanair | 54 | 54 | |||
| SAS | 3 | 3 | |||
| Shandong Airlines | 6 | 6 | |||
| Shanghai Airlines | 6 | 6 | |||
| Shenzhen Airlines | 5 | 5 | |||
| Singapore Airlines | 1 | 1 | |||
| Sky Airlines | 2 | 2 | |||
| Southwest Airlines | 13 | 13 | |||
| SpiceJet | 2 | 2 | |||
| Transavia Airlines | 1 | 1 | |||
| TUI Travel PLC | 6 | 6 | |||
| Turkmenistan Airlines | 3 | 3 | |||
| United States Navy | 3 | 3 | |||
| UPS | 1 | 2 | 3 | ||
| V Australia | 3 | 3 | |||
| Virgin Blue Airlines | 3 | 3 | |||
| Xiamen Airlines | 5 | 5 | |||
| Total 2009 Deliveries | 372 | 8 | 13 | 88 | 481 |
| Current Year Deliveries through December 2009 |
737 | 747 | 767 | 777 | Total |
Eurocopter meets 2009 Turnover and Delivery Objectives – Civil Orders decrease while military Orders increase
January 20, 2010 by Marcel van Leeuwen · 1 Comment
Eurocopter, the world’s leading helicopter manufacturer, met its business and delivery objectives for 2009 and stabilised its turnover at the level of its record year, 2008. The world economic crisis caused a sharp order decline in the civil market for light helicopters. However, governmental orders have over-compensated in value the drop in commercial unit sales, leading to the second-best result of order intakes in Eurocopter’s history. In line with Eurocopter’s roadmap, the Support and Services business was also strengthened with the signature of a number of significant contracts.
Paris, 20 January 2010
Deliveries remained stable with 558 new civil and military helicopters delivered in 2009 and almost matching the peak level of 2008. This figure reinforces Eurocopter’s position as a major branded business division within EADS, accounting for a consolidated turnover of 4.6 billion Euros.
Order bookings suffered a decline in terms of units sold, but not in value. A net total of 344 new aircraft, including 81 Super Puma/Cougar/EC225/EC725 family helicopters, were sold, amounting to 5.8 billion Euros. With around 460 gross orders, Eurocopter secured its No. 1 market position in the civil and parapublic market. The company’s total order backlog at the end of 2009 amounted to a robust 1,300 helicopters or the equivalent of 15.1 billion Euros, an increase of more than 1 billion Euros compared to the end of 2008.
While governmental markets remain stable despite of budget constraints, a full recovery of the commercial markets in 2010 is not evident. The lower order intake for light helicopters in 2009 will lead to lower production rates in 2010, while military helicopter rates will increase, a situation Eurocopter should be able to manage with its built-in flexibility.
Consolidated turnover
55 percent of the company’s turnover achieved in 2009 was related to serial helicopters (equalling 2.5 billion Euros), 35 percent (1.6 billion Euros) derived out of support and services, whereas 10 percent (0.5 billion Euros) were realized from development and other activities.
While 52 percent of the turnover derived from civil and parapublic sales, 48 percent was related to Eurocopter’s military products. The company thereby retained its healthy balance between the civil and military markets. The export share is 65 percent, with 35 percent achieved in the company’s domestic markets (i.e., France, Germany, Spain), proving Eurocopter’s successful strategy of expanding its activities to emerging markets.
Order bookings
The breakdown of order bookings is as follows: serial helicopters 65 percent (3.8 billion Euros), support and services 31 percent (1.8 billion Euros) and development and other activities 4 percent (0.2 billion Euros). Eurocopter’s bookings for support and services have grown consistently by an average of 10 to 15 percent over the past three years.
Regarding the 2009 bookings, military and civil products count for 70 and 30 percent respectively. The total export rate amounts to 66 percent.
Bookings related to product range
2009 orders were placed for 344 production helicopters as follows:
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8 units of EC120 Colibri
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103 units of the AS350/355 Ecureuil/Fennec/EC130 family
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58 units of EC135
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63 units of EC145 (including 51 UH-72A Lakota)
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9 units of the Dauphin/Panther/EC155 family
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81 units of the Super Puma/CougarEC225/EC725 family
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22 NH90
Eurocopter CEO Lutz Bertling stated, “Our global industrial footprint and our comprehensive, innovative product and services portfolio have proven to be an asset in this difficult economic period. Not all geographic areas and market segments are equally affected by the crisis. The downturn in the corporate, tourism and EMS markets which typically acquire smaller helicopters has been countered by a stable oil and gas market due to new exploration activities, and by a strong military market. Our decision to focus, in 2009, on governmental and services orders has proven to be right and allowed us to increase our backlog by more than 1 billion Euros. While the United States and Eastern Europe, for instance, have been heavily affected by the crisis, Latin America, Asia and Western Europe kept up relatively well. In 2009, we have continued to expand our industrial presence in the UK, Japan, the USA, Australia, Brazil, Singapore and Thailand, while at the same time investing more resources into Research & Development and new products. We will be ready for future market requirements when the economy recovers.”
Eurocopter’s key highlights in 2009 were the roll-out of the KUH (Korean Utility Helicopter), developed jointly with Korea Aerospace Industries, on July 31, and the maiden flight of the EC175, a joint development with Avic of China, on December 4. Both programmes are precisely on schedule and show great market potential already at this early stage.
The Tiger has been deployed to Afghanistan by the French Armed Forces, proving unparalleled reliability and serviceability in the operational theatre. NH90 deliveries have continued throughout 2009 with a fleet of 40 helicopters in the tactical transport version now in service in five countries. The first naval NH90 has been handed over to the Netherlands.
Deliveries of the UH-72A Lakota for the US Army and Navy are approaching 100, all of them on time or even ahead of schedule. An order for a further 51 Lakotas was placed in December. The deployed Lakota fleet has accumulated over 21,000 flight hours to date, Eurocopter’s Support and Services section booked three major orders, one for the retrofit of 26 German Army CH53s for personnel recovery mission, one for the Life Extension of 28 Royal Air Force Pumas, and one for the retrofit of 34 Brazilian Army Panthers. The range of Eurocopter’s services has also been expanded substantially in 2009, with the inauguration of new simulators at Helisim, HFTS, American Eurocopter and Eurocopter Deutschland, the installation of 24/7 customer service centres in Hong Kong and Dallas, a new logistics platform in France, and guaranteed ad hoc support to all customers.
Challenges for 2010
Facing an unpredictable market situation, Eurocopter has launched an internal programme designated SHAPE with the following aims:
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Save cash (short term), implement cost reductions to save €200 million per year, and reduce inventory, both to generate the cash for investing in the company’s future.
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Improve productivity and efficiency, implement faster, simplified processes.
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Invest into new projects such as the X4 (successor for the Dauphin), the Aerial Armed Scout proposed to the US Army together with Lockheed Martin, and the Future Transport Helicopter. In addition, Eurocopter will boost environmental, safety and performance/cost technologies for the benefit of its customers. With bluecopter® by Eurocopter, environmental friendliness has become a focus for Eurocopter’s innovation works.
The company’s SHAPE programme is the right step towards implementing the Eurocopter Vision 2020. With these targets, combined with its strong order backlog, Eurocoper is well-placed to weather the challenges of the years to come.
Source: EADS
ATR Aircraft deliveries in 2009
January 18, 2010 by Rob Vogelaar · 5 Comments
Status 2009
ATR booked orders for 40 new aircraft (see figure 1) and options for 17 aircraft in 2009. Europe and Asia, each with orders for 16 aircraft, represented 80% of the total order intakes of the year. In addition, 50% of the orders of the year were booked for the newest ATR ‘-600 series’ aircraft (2 ATR 42-600 and 18 ATR 72-600).
Since the beginning of the programme, ATR has sold 1,000 new aircraft (418 ATR 42s and 582 ATR 72s). In the last 5 years, ATR has booked net orders for 316 new aircraft, which represents almost a third of the total orders registered by ATR.
ATR’s current portfolio is composed by 150 operators in over 80 countries.
ATR delivered 54 new aircraft in 2009 (see figure 2). As of December 31st 2009, ATR delivered a total of 864 aircraft (409 ATR 42s and 455 ATR 72s).
ATR finished 2009 with a backlog of 136 aircraft, including a total of 59 ATR ‘-600 series’ aircraft. The current backlog represents more than two years of production.
ATR reached a new record in the annual turnover, with US $ 1.4 billion (see figure 3).
In 2009, according to their scheduled development programme, the ATR 72-600 pre-series aircraft started its flight test campaign, while the first ATR 42-600 was powered-on and began its ground tests.
ATR continued in 2009 the reinforcement of its customer support activities and further expanded its presence in Asia with the opening of a new logistic support center in Kuala Lumpur. This new facility enables its operators in the Asia-Pacific region having contracted a Global Maintenance Agreement (GMA) to benefit from increased efficiency and reduced costs. In addition, ATR booked in 2009 new GMAs with 5 operators, covering 41 aircraft. Among these contracts, ATR inked with Spanish carrier Air Nostrum the first GMA for the maintenance of ‘-600 series’ aircraft. Today, 26% of the ATR aircraft in operation –over 200 aircraft- are covered by GMAs.
ATR has a total workforce of 870 employees.
Outlook 2010
ATR plans to consolidate its deliveries over 50 aircraft during 2010, while waiting to get a better overview on the recovery of the economy in order to continue its delivery ramp up. For 2010, ATR points also at the stabilization of its annual turnover, around US $ 1.4 billion. As already done in previous years, ATR will keep on strengthening its activities to assist its clients in order to source the optimal aircraft financing.
According to its development programme, the ATR 72-600 will continue its 150 hours flight test campaign in order to obtain its certification. The ATR 42-600 will start in 2010 its 75 hours flight test campaign, and will benefit from certain tests completed by the ATR 72-600. The production of the first commercial ATR ‘-600s’ will start in 2010, for an entry into service, as planned, in 2011.
In the last five years, turboprops are achieving higher commercial results than jets in the regional market and represented almost 60% of the total orders. The potential for turboprops is high both in growing economies and in regions where turboprops are replacing regional jets or previous turboprop versions. In 2010, ATR focus on consolidating its leading position in the turboprop market, with more than 50% of the total sales.
Concerning the support and services activities, ATR will continue expanding its worldwide support offer in 2010 with the opening of new training facilities, while evaluating further developments of its regional support policy.
FIGURE 1 – New aircraft orders in 2009
| AIRLINE | ATR 42-500 | ATR 42-600 | ATR 72-500 | ATR 72-600 |
| Afrijet (Nigeria) | 4 | |||
| Air Algérie | 4 | |||
| Air Nostrum (Spain) | 10 | |||
| Alenia (for Italian Navy) | 4 | |||
| Arkia (Israel) | 1 | |||
| Belle Air (Albania) | 1 | |||
| Golden Air (Sweden) | 1 | |||
| Libyan Airlines | 2 | |||
| Lion Air / Wings Air (Indonesia) | 5 | |||
| Royal Air Maroc | 2 | 4 | ||
| Vietnam Airlines | 2 | |||
| TOTAL ORDERS | 2 ATR 42-500 | 2 ATR 42-600 | 18 ATR 72-500 | 18 ATR 72-600 |
FIGURE 2 – New aircraft delivered in 2009
| AIRLINE | COUNTRY | ATR 42-500 | ATR 72-500 |
| Air Austral | Réunion (France) | 1 | |
| Air Botswana | Botswana | 2 | |
| Air Caraibes | French Caribbean | 1 | |
| Air Guyane | French Guyana | 1 | |
| Air Saint Pierre | Saint Pierre et Miquelon (France) | 1 | |
| Air Tahiti | French Polynesia | 1 | |
| Air Vanuatu | Vanuatu | 1 | |
| Alenia Aeronautica | Italy | 1 | |
| Arkia | Israel | 1 | |
| Aurigny Air Services | Channel Islands (United Kingdom) | 2 | |
| Belle Air | Albania | 1 | |
| Berjaya Air | Malaysia | 2 | |
| Buquebus | Uruguay | 1 | |
| Capitaneria di Porto | Italy | 1 | |
| Cebu Pacific | Philippines | 2 | |
| Firefly | Malaysia | 2 | |
| Finncomm Airlines | Finland | 2 | |
| Golden Air | Sweden | 1 | |
| Lao Airlines | Laos | 2 | |
| Libyan Airlines | Libya | 2 | |
| Lion Air / Wings Air | Indonesia | 3 | |
| MASwings | Malaysia | 6 | |
| NAYSA | Canary Islands (Spain) | 2 | |
| Precision Air Services | Tanzania | 2 | |
| Royal Thai Air Force | Thailand | 4 | |
| Tarom | Romania | 2 | |
| TRIP | Brazil | 2 | |
| Vietnam Airlines | Vietnam | 5 | |
| TOTAL DELIVERIES | 6 | 48 |
FIGURE 3 – ATR – Turnover
| ATR | 31/12/05 | 31/12/06 | 31/12/07 | 31/12/08 | 31/12/09 |
| Turnover(US $ billion) | 0.54 | 0.70 | 1.10 | 1.30 | 1.40 |
EMBRAER DELIVERS 244 JETS IN 2009
January 12, 2010 by Rob Vogelaar · Leave a Comment
Airbus achieves record aircraft deliveries in 2009
January 12, 2010 by Rob Vogelaar · 2 Comments
Airbus delivered a total of 498 aircraft in 2009. The figure is a new company delivery record for a single year and is 15 more aircraft than in 2008. The figure includes 402 A320 Family aircraft, 86 A330/A340s which are both records for a single year, and 10 A380s. Airbus Military, the military aircraft division of Airbus, delivered 16 light and medium transport aircraft.
Further company streamlining saw the formation of Airbus Military, signalling the full integration of military aircraft programmes within Airbus. The maiden flight of the A400M (MSN 1) in December was a proof-point of the successful re-organisation and new programme set-up.
Australian Air Force A330-MRTT at Le Bourget 2007 (c) 2007 ZAPP
Conversion work for the first A330-based Multi-Role Tanker Transport (MRTT) aircraft, for the Royal Australian Air Force (RAAF) was completed, and is on track for delivery in mid 2010. The MRTT received a further incremental order for three aircraft, raising the total to 28. On the smaller transport aircraft front, the year was successful, with 19 orders from seven customers. These include one order for the C-212, two for the CN-235 and 16 for the C-295.
